Wave Aims To Be Blockbuster Video Of E-Commerce

Wave Systems Corp. of Lee, MA plans to bundle hundreds of software titles with major PC manufacturers’ products using its proprietary WaveMeter technology.

Wave Systems is creating a series of encrypted CD-ROM and DVD-ROM discs, the contents of which can be purchased at the micro-transaction level through the Internet. The company says this technology is "creating a new distribution paradigm for the PC industry" by making pay-per-use schemes technologically possible.

The WaveMeter technology is both a physical chip as well as a software package that simulates the chip’s usage metering capabilities, according to Mark Marinovich, Wave Systems spokesperson. The chip will enable participating software publishers "to charge a fee based on consumer usage, like a 900 phone number," he said. "We will be able to support any number of business models."

"The anticipated incorporation of the WaveMeter in 1998 models by several major PC manufacturers will enable us to reach millions of users, who can pay for usage credits once a month and let the meter take care of the rest, " said Steven Sprague, president and chief operating officer of Wave. "We aim to be the Blockbuster Video of Internet commerce."

The company’s micro-transaction technology enables publishers to rent titles in many different ways. The consumer may opt to use the title on a "per-use" basis, either by the game or by the hour; as a "rent-to-own" titles with the fees applied to the eventual purchase of the product, or on an annual subscription basis, or the consumer can simply purchase the title and pay for it online.

Wave said this "rent-to-own model will represent a boon for consumers" as someone who would typically spend $200 each year on four or five premium game titles could try 10 to 15, then purchase the three or four he or she likes best.

Marinovich says this technology saves software publishers a whole array of fees from packaging or maintaining employees and servers. The publishing venture becomes a turnkey operation, he says. Ultimately, the chips can also be used for DVD and broadband. "We see broadband as the ultimate utilization of the chip because of the convergence of television and computers."

For more information about Wave, visit them online at http://www.wave.com.

(Contact: Mark Marinovich, Wave Systems Corp., tel 408-261-9510, Email: mmarinovich@wavesys.com.)